ADV 275 Final

1. centralized market
2. economy where supply>demand (sell surplus)
• As people started manufacturing more… industrialism → rise of advertising

2 Key Forces causing rise of advertising

“Half of all my advertising is wasted. I just don’t know which half.”
• It's why we study advertising

John Wannamaker quote

U.S. alone = 1/2 of all advertising in the world
• u.s. - 300-400 B
• global - 700-900 B

Advertising – US and Global spending

creating demand for products (generating customers)

Marketing as “demand creation”

Exchange: involves 2/more parties
• communication needed to sell
• something of value to one another
- Company & service gets money
- Customer gets good service/company

Marketing as “exchange”

tons of stuff fall under marketing

- advertising
- PR
- events
- promotion
- POP
- brand identity
- Social Media
- product mgt.

Marketing as “umbrella”

• Price is never the issue… it’s VALUE
- Advertising builds value

Benefits + Cost = Value

paid, placed, & purposeful communication w/ the intent of persuasion

Advertising definition

COORDINATION & INTEGRATION of all marketing communications into a seamless program designed to maximize the effect of customers & to stakeholders

IMC definition

Planned process to influence; not paid placement, uses 3rd party endorsement

PR definition

Product, Price, Place, Promotion
• advertising focuses on PROMOTION

4 P's of the Marketing Mix

• brands: company owns several
• branding: creating logos/colors/audio logos like commercial songs
• identity: look/character of brand (tiffany co = tiffany blue)
• equity: add/subtract brand value
- better the brand = more ppl like it = more equity/value to the company
- ex. Coke machine (expensive) vs Walmart coke (cheap)
- It’s measurable
• parity: copy of another brand

Brands, Branding, Brand Identity, Brand Equity, Brand Parity

similar to 7 pillars of IMC???

Promotional Mix

1. Advertising
- broadcast
- print
- OOH
- mail
- directory
- internet

2. PR
- media
- government
- relationship management
- crisis management

3. Non-Advertising Promotion (not always purposeful & placed)
- discounts
- coupons
- sponsorships
- giveaways

4. Personal Selling
- salespeople
- telemarketing
- customer service
- tech support

5. Events/Experiential
- trade shows
- sampling
- test drives
- invite events

6. Social Media
- owned sites
- earned sites
- crowd sourced

7. All Other
- packaging
- branding
- POP
- content marketing

7 Pillars of IMC

national: nationwide basis or most regions of country

retail/local: shop @specific store, local service

national/regional/local advertising

business-to-business (aka trade advertising)

business-to-customer

B2B & B2C

direct marketing: communicating directly w/ target customers
- ex) emails, interactive social media

• NEW concept of omnichannel: ability of company to sell product/service through multiple diff platforms
- Brick & mortar store = term for physical store
- Click & mortar = both physical & online
- Pure play = online
• provides extensive database of customer names & info

brand awareness meant to build trust in brand while direct marketing is meant to drive a specific action.

Direct Marketing & Direct Response vs Brand Awareness

• Ad = touch point for people see/hear/experience brand or company
- unexpected: unexpected info customer finds w/o trying (WOM, viral)
- customer-initiated: direct experience w/ brand (ex. call w/ representative)
- intrinsic: knowing what you want; consumer buys
- company created: planned marketing messages

control (x) impact (y)
high to low diagonal line

Touch Point – company created, intrinsic, unexpected, customer-initiated

P: advertising (TV, radio, magazines, etc)
O: website, youtube channel, blog (your own, controlled channel)
E: WOM, reviews, comments

NEW … shared media
- Social media
- company posts on instagram (owned)... person comments (earned)

Paid Media, Owned Media, Earned Media

creation & data combined

Art vs Science of Advertising

1) Vision, Mission, Goals, Objectives (vee-mo = vgmo)

vision = future; what we want to become

mission = purpose; values (what's being done)

goals = desired outcome

objectives = specific actions & timelines for achieving goal

2) business plan

3) marketing plan

4) advertising plan

Advertising in Marketing Context

Problem = need/want
Opportunity = solution
- can be so new that it GIVES opportunity (ex. ipod)

• market opportunity is where
- Favorable demand trends
- Customers’ needs/opportunities NOT satisfied
- Firm can compete effectively

Problems & Opportunities (analysis)

segment market (group/categorize)
--> target segment (choose one)
--> position product to segment
--> communicate positioning via advertising

Target Marketing Process

segment: dividing market into distinct groups w/ similarities
target: determine how many segments to enter (undifferentiated, differentiated, concentrated) & choose ones with most potential
targeting: ^act of doing
positioning: fitting product/service to segment(s) to make it unique in broad market

Segment, Target, Targeting, Positioning

Geographic: location (region, city, size, metropolitan, density)

Demographic: quantifiable measurements of people (age, income, gender, married)

Psychographic: Lifestyle, feelings, thoughts, harder to quantify (personality)

Technographic: how consumer interacts w/ technology (how they pay; mobile or online shopping?)

Buyer Behavior: how many they buy (pack or single)... how often... etc.

Selecting a Target Audience (5)

1. Greatest Generation
- war times

2. Baby Boomers
- got all the good stuff

3. Gen X
- believed that nothing was left for them

4. Millennials
- delayed marrying, kids, etc.
- baby boom parents dying → $$ to afford marrying & families

5. gen z
- first generation born into technology
- more involved politically (care more)

Generational Targeting (oldest to youngest)

sometimes done to change target audience OR saving brand (declining sales)

(Re)Positioning

• marketing channels: interdependent organizations involved in making product/service available for use
- Where you get “parts'' (ex. Car parts)

• direct channels: directly deal w/ customer (ex. store, online)
- Driven by direct-response ads, telemarketing, Internet
- used when selling expensive+complex products

• indirect channels: network of wholesalers and/or retailers

Distribution Channels

unique selling proposition

Benefit:
- Buy product/service and you get this benefit.
Unique:
- Proposition must be unique to brand or claim; rivals can't or don't offer it.
Potent:
- Promise must be strong enough to move mass millions.

USP

customer... media... agency... client

Participants in IMC Process

consumer - entertainment

advertiser - ways to reach people

media itself - product they sell; delivering audiences

3 Perspectives of Media

1. Creative Department: create & execute ads

2. Account Services: run the account
- Most contact w/ client
- account manager talk to diff departments and talk about spending costs

3. Media (marketing) Services: research, estimate costs, place & negotiate

4. General & Admin (management): don’t have anything to do with advertising
- Office management, payroll, etc.
- Accounting goes here NOT account service

BWH's - Full Service Agency Organizational Chart

15% of placed media

cost of ad: $500 (gross cost = what's paid)
agency commission: $75
net cost: $425 (how much media company earns)

Standard Agency Commission

problem recognition
--> info search
--> alternative evaluation
--> purchase decision
--> post purchase evaluation

Consumer Decision Making Process/Model

internal: info retrieval that involves recalling
- past experiences
- info regarding various purchase alternatives

external: info from external sources
- internet, personal, public sources
- personal experience

Information Search – internal vs external


exposure: how much you allow yourself to see

→attention: choosing to focus attention

→comprehension: diff interpretation (attitudes, beliefs, experiences, etc.)

→ retention: memory

Selective exposure/attention/comprehension/retention

Psychological tension experienced after a difficult purchase choice
- negative post purchase evaluation
- questioning worth/value after buying

Cognitive Dissonance

Sender Encodes Message through Medium Decoded by Receiver

- noise (literal/figurative)
- feedback loop (way for consumer to respond positively)

SEMDR

Facilitates communication between sender & receiver
- nonpersonal aka mass media
- personal/direct communication

Channel

form of personal/direct communication

Word-of-mouth: informal communication among consumers
- buzz/viral? marketing: generating positive WOM (hard to generate. customers have control)

WOM

AIDA: stages buyer passes through personal selling process
- Attention Interest Desire Action (what should be put in ad)

Hierarchy of Effects: stages consumer passes from no awareness-->action
1. Cognitive stage: what receiver knows or perceives about product or brand.
2. Affective stage: receiver’s feelings or affect level for brand.
3. Behavioral stage: consumer’s action toward brand.

- helps identify which stage potential buyer is in to take them to next stage

Response Process - AIDA & Hierarchy of Effects: Cognitive, Affective, Behavioral

pros:
- draws attention whether you like them or not
cons:
- celebrity outshines product so people don't remember product
- celebrity image impacts brand

Use of celebrities – positives and negatives

• Primacy effect: info presented first most effective
• Recency effect: arguments presented last most persuasive

Primacy/Recency Effect

1. Fear
2. Humor
3. Sex (aesthetic)
4. Rational
5. Bandwagon

5 Common Appeals

Vision – Big picture of “what” you want to achieve as an organization

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Mission – general statement of “how” you will achieve it


(Values – what you stand for, believe in)

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Strategy – what message is going to say

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Goals – general statement of what you want achieve as a result of strategy (can be intangible)

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Objectives – turns goals into specific and quantifiable

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Tactics / Action Plan – how to execute strategy

Vision, Mission, Goals, Objectives, Strategy, Tactics

Specific
Measurable
Attainable
Relevant/Realistic
Time-based

S.M.A.R.T. Goals

marketing
- identify what's to be accomplished by marketing program
- defined in terms of specific & measurable outcomes
- quantifiable, realistic, and attainable

IMC
- statements of what aspects of IMC program will accomplish
- based on communications tasks required to deliver messages to target audience

sales
- aim to increase sales
- require economic justification
- required to produce quantifiable results (ex. ROI or sales volume)

communications objectives
- provide relevant info
- create favorable feelings toward brand
- cognitive --> affective --> conative stages

Marketing vs. Sales vs. Communications Objectives

- tech
- competition
- economy
- product quality
- price
- distribution
- advertising & promotion

sales aren't always representative of how well ad is doing... many factors!!

Factors Influencing Sales

Communication Effects Pyramid

Purchase Funnel

Defining Advertising Goals for Measured Advertising Results

communications task:
- performed by advertising
- stages: awareness.... comprehension... conviction... action

characteristics of objectives
- concrete & measurable tasks
- well-defined target audience
- benchmark measures: determine target market's present position in response stages
- specified time period

DAGMAR - Approach to Setting Objectives

- company focuses on customer needs & provides
- view market from consumer POV
- starts w/ customer and builds back into brand

Outside In / Consumer Centric

1. headline
2. sub-headline
3. visual
4. logo/brand
5. slogan/tagline
6. body copy
7. call to action
8. mandatories/obligatories

Ad Anatomy

Emotions & benefits tend to be more powerful

Wants vs Needs, Features vs. Benefits

it works

What makes a great ad?

Research Strategy Tactics

R-S-T

view ad as a communication vehicle for promoting own aesthetic viewpoints and personal career objectives

copywriter: develop campaign

art director: ensure message and image are conveyed through visual aspects

production people: manage project and work with several teams; deliver finished product

Creative personnel – copywriters, art directors, production people

• immersion: gathering raw material & data; immersing oneself in the problem
• digestion: analyzing the info
• incubation: letting subconscious do the work
- Stop thinking about it… brain will subconsciously connect ideas
• illumination: birth of an idea
• reality/verification: studying idea & reshaping it for practical usefulness

Young/Wallas Model of the Creative Process

ad = 1

campaign: 2+ ads that involves common theme & elements

Ads vs. Campaigns

similarities in campaign
- verbal (type of language)
- visual (dark/light/cute/simple/etc.)
- aural (sound/instruments)
- attitudinal (inspiring, cool, sad, etc.)

Verbal, visual, aura, attitudinal similarities

central message expressed through slogan/tagline
- research, strategy, tactics

Campaign theme/creative theme

comp: rough layout
storyboard: series of drawings that present a proposed commercial’s visual layout

scripts: written ver. of commercial
- provides detailed description of video & audio content.

Comps, scripts, storyboards

doc that specifies key elements of creative strategy & serves as basis for communication between client & advertising agency

1. Basic problem/issue communication must address or solve
2. Communication objectives
3. Target audience
4. Insights to drive creative work (client gives info ex. Brand cares about humor)
5. Key benefits or major selling idea to communicate
6. Reason to believe/supporting info
7. Tone and manner/brand personality
8. Deliverables (what is needed and when)
9. Measures of success (should be tied back to objectives)

Creative Brief

User generated content (ex. heinz asked customers to draw ketchup or contests, crowdsourcing, social media)

UGC

Pre-production, production, post-production

strengths:

* reaches larger audience than any other medium
* visual & sounds grab people’s attention and attaches a personality to the brand

weaknesses:

* most expensive type of advertising
* people might not be paying attention; distractions

strengths & weaknesses of TV

strengths:

* natural segmentation by station so it’s easy to target geographically
* no visuals may be a weakness but mental imagery may be a huge advantage (audience’s imagination & how you say certain things to paint that image)
* very flexible - advertising message can change just before broadcast time

weaknesses:

* audience may be passively listening as they drive
* no visual elements

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strengths & weaknesses of radio

strengths:

* data rich medium
* convenient; people can quickly “enter” the store
* can buy as many impressions you want

weaknesses

* there are privacy issues people are concerned about
* one of the most oversaturated mediums
* reliance on technology; ad might not show up because of a slow computer

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search ads

strength: strike while the iron’s hot; advertising exactly what the person is looking for

disadvantage: limited amount of info you can give with little words & no visuals

strengths & weaknesses of internet

strengths:

* relevant audience; people buy what they’re interested in so it’s like natural targeting
* touch smell sight experience
* quality of reproduction is great for magazines; travel, food, jewelry looks really good

weaknesses:

* quality of reproduction is bad for newspapers
* magazines take along time to produce compared to newspapers (long lead time)
* hard to measure effectiveness because readership is an overestimate

strengths & weaknesses of print

strengths:

* it’s large size makes it eye catching
* cost effective brand awareness
* builds up frequency quickly because people pass by it a lot (ex. popular freeway)

weaknesses:

* difficult to measure/evaluate the impact it has on sales
* hard to remember contact information because of short exposure time
* the primary focus is driving

strengths & weaknesses of OOH

strength:

* can hold a lot of information
* brand retention; easy to remember what you read/saw
* you need information like their address to mail it so it’s highly targeted
* touch point because people need to look at it before throwing it out incase it’s important SO it has a high open rate

weakness:

* printing & postage is costly
* requires personal information
* it’s not instantaneous

strengths & weaknesses of direct mail

strengths:

* like direct marketing you know exactly who’s seeing it because you need their email to send it
* permission-based so those people allowed you to email them meaning it’s these people are likely interested in the product/service; highly targeted
* easy to share email content; WOM
* can be sent to a ton of people with ease & little cost
* strengthens relationship with customers with new leads & reminders

weaknesses:

* overlooked because there are so many emails to look at. it’s easy to delete
* spam may irritate people
* easy to unsubscribe
* fierce competition; hard to stand out with so many emails
* message may be undelivered because it may be filed under “spam”
* design problems; changes based on different devices

strengths & weaknesses of email

TVHH = TV Households

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households using television (HUT) x share = rating

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show's __rating__ is the percentage of all possible TV households or viewers in the country, its __share__ is the percentage of households or viewers actually watching TV at the time.

how do you measure rating point? (tv ratings)

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what does TVHH \* HUT stand for?

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what is a share? rating?

average audience

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measures listeners for radio

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Average over entire radio (spikes at different times)

what is AA and what does it measure?

?? measures audience for TV, radio, newspapers, etc.

Nielsen

average quarter hour

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average number of people listening for 5 min straight (audiences come and go)

AQH

telephone directories of businesses

what is yellow page advertising

Circulation: how many issues distributed

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total readership: how many read (higher than circulation because it’s estimated)

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passalong: first person + others

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Daily Effective Readership: average number of people who were potentially exposed to a display/billboard

circulation, total readership, passalong, DEC

internet ads

viewers/visitors, page views, duration of visit

pay per click

PPC

cost per 1000

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cost/audience

CPM

?? buy most ad views w/ lowest cost

“buy most with the least”

• ease of travel, international banking, global communications

* Money transfer is easy

• less language barrier

• cultural mixing

• internet access and commerce

• global sourcing of product

• technology

• growing global economics

international marketing & advertising… reasons for rise

cultural, values, norms. legal, pricing, shipping

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issues w/ international marketing

globalized, localized, glocalizing

3 types of international advertising

* Pro: provide info, encourage higher standard of living, helps new firms enter market, creates job, promotes competition, lowers prices; economically good
* Cons: more propaganda than info, creates consumer needs & faults, promotes materialism insecurity & greed

ethics - arguments for & against?

Fair Housing Act (Civil Rights Act) prohibits discrimination in housing-related transactions, including advertising, based on race, color, religion, national origin, sex, disability, and familial status (known as “protected classes”).

protected classes

corporate social responsibility 

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modern proactive approach

CSR

1. Trustworthiness
2. Fairness
3. Respect
4. Responsibility
5. Caring
6. Citizenship

Remember: T/F? R2 C2

6 pillars of corporate citizen

in anything you do consider 3 things: people, planet, profit 

triple bottom line

John Stuart Mills; Utilitarianism - do the most good OR do the least harm

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Immanuel Kant; Do the Right Thing - “categorical imperative”

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Joseph Fletcher - Situational Ethics

3 philosophies

legal, illegal, unlawful (no law that makes it legal/illegal)

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there’s def more…

legal issues

for creative/original work

• music, stories, screenplays, films, television, websites

• don’t need to pay for protection; copyright moment you create

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copy = creative

copyright

• products, designs, machinery, formula, patent “pending”

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patent = product = pending

patent

• identity, logos, name/symbol, ™ (means you want a trademark), ® (registered trademark) protected but create protection by taking action

• were trademarks but not protected: aspirin, yoyo, cellophane, nylon, escalator

trademark

regulations range from industry (trade groups), federal, local, city, county, state, etc.

regulation

corporate social responsibility

self regulation

Federal Trade Commission regulate business

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Federal Communications Commission regulate TV & internet (which is owned by the people)

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Food & Drug Administration

FTC, FCC, FDA

Federal Trade Commission Act + Pure Food & Drug Act

* Forced us to be more honest in advertising 
* Can’t lie about product, what’s on label, have honest business affairs

FTC Act

Pure Food & Drug Act

* Puffery “the best'' allowed to a certain extent … can claim yourself but if you state someone else does then you need evidnece

puffery